SNOW
is gapping up on earnings. I am looking for an entry at 167.22 or 170.07 for calls to 175-185. I am risking $1 to make $5-10 on this trade. If it gaps over the level I will enter on a retest. If it gaps slightly below, I will wait for a break above and retest.
This fits all of my criteria for my favorite type of setup. A gap over a structure/range area and a multiple day consolidation. My #1 requirement for every trade is a high R ratio. I must see potential for a large run to even consider it.
Comment:
No entry on this trade. I am still looking at a potential entry at 161.57 if this 30m candle closes above and holds.
Comment:
This is why the retest is so essential on any gap or breakout trade. They often fail so I always wait for a confirmed entry.